Softening of raw material prices helps Waitrose salmon supplier’s earnings

Lower turnover but higher EBIT margin for Aquascot.

In a annual report posted in Companies House for the year ended Jan 31st 2019, Aquascot’s turnover dropped by 4.1 per cent.

However, its EBIT margin was slightly up at 14.4 per cent when compared to last year’s 13.9 per cent.

Last year, the company wrote that the high cost of raw material played a major role when its 2018 operating profit sliced in half when compared to 2017.

“At a summary level for the year, sales volume increased by 4.4 per cent compared to the previous year”.

Aquascot wrote that this reflected “softening raw material prices which the company was able to pass on”.

“Operating performance and efficiency improvements during the year helped generate a gross profit of £6.38m with a gross margin of 10.5%. This was a significant improvement on the previous year’s profit of £5.64m, and gross margin of 8.9%.

“The directors believe the company responded positively in challenging market conditions and has made significant advancements during the year,” it wrote. “New projects and initiatives are being enacted and further progress is expected in the year ahead.”